Get Found

Scale Your Business

Convert & Keep Customers

Industries We Serve



Region header is

  • Home
  • Blog
  • What Is Customer Service Automation? (+7 Ways It Helps Your Business Thrive)

Looking for an easy way to improve your customer service and streamline operations? Customer service automation might be your magic wand to make that happen. It is the most basic form of integrating technology into your business to bolster efficiency.

But what is customer service automation and how can you make it accessible for your business without it feeling like a robot is running your operations?

customer service automation - robot answering calls and emails

What you don’t want it to feel like when you automate your customer service.

You’re in the right place! This guide covers all you need to know about customer service automation, its benefits, and how to use it to your advantage.

What is customer service automation?

Customer service automation is the process of minimizing human involvement in handling customer inquiries and requests. It simplifies customer-company interactions and allows customers to create a personalized experience for themselves using automated technologies. There are many ways to automate customer service, which we’ll cover next.

Types of customer service automation

Providing quality customer service at scale is difficult, but the following ways to automate customer service can help you overcome that hurdle.

1. Chatbots

Chatbots are AI-powered text tools designed to interact with customers in real-time. They are customizable, provide quick answers to basic queries, and direct customers to other resources or services within your scope.

ways to automate customer service - chatbot example


Website chat also reduces typo errors and redundancy from handling multiple queries manually. Plus, you can collect lead information from website visitors directly through a chatbot so you can follow up or nurture them through the funnel later.

Moreover, as customers use chatbots, you can use their interactions to improve the information you provide on your website, the way you engage customers, and your targeting.

Is your website up to par? Find out with our free Website Grader

2. Email and SMS automation

Email and SMS automation allow you to maintain direct and consistent communication with potential and existing customers. Here’s how:

  • You can build an email list and segment your audience according to their touchpoints.
  • You can schedule and send brand newsletters and personalized SMS text messages anytime.
  • Most importantly, the automation allows you to run targeted SMS and email marketing campaigns on new or improved services.
  • You can also integrate email and SMS automation with your call center software to further communicate with customers based on the outcome of their call queries.

example of lead nurturing sequences in localiq dashboard

An example of some automated emails you can use to automate customer service.

3. Customer Relationship Management (CRM) automation

CRM automation gathers, stores, and organizes your customers’ data into one place that is accessible to authorized staff. It helps your customer support reps retrieve customer data and information when necessary with little or no hassle.

example of a lead inbox with customer data

An example of a lead inbox where you can automate follow-up.

4. Self-service

Most customers prefer to help themselves if given the proper tools and information. They believe self-service is faster, as they don’t have to go through countless customer service protocols.

Here’s where a Frequently Asked Questions section and a robust knowledge base (with articles, tutorials, libraries, and whatnot) comes into play. They provide customers with useful information about your business, reducing the need for interactions with a customer agent.

customer service automation - etsy help page example


Moreover, equipped with an AI-powered recommendation engine, the service can provide customers with personalized experiences and improve their engagement.

5. Interactive Voice Response (IVR)

This automated phone-based customer support service (pre-recorded voice) uses natural language processing to assist customers when they contact your support line. It collects information from customers, provides them with options based on their queries, and transfers them (if need be) to appropriate departments for further assistance.

Furthermore, IVR service can handle many calls simultaneously and help your customer agents manage their workloads better.

Top 7 benefits of customer service automation for your business

Here are seven significant ways customer support automation can help your business thrive amidst competition in your industry.

1. Less expense

Customer service automation is an effective cost-reduction measure to improve the customer experience without compromising quality. As it reduces the need for human involvement, you get to spend less on hiring, training, and managing customer support reps or employees who handle customer queries. It also reduces the average cost of service per customer.

In fact, research by McKinsey Digital revealed that organizations that use technology (read as automation) to revamp their customer experience save 20-40% on service costs.

customer service automation benefits - cost efficiency stat

And, a report presented by Juniper Research also estimates that chatbots will save businesses around $11 billion in annual costs by 2023.

2. More free time

Time is one of every business’s most valuable assets. That being so, automating simple tasks gives you time to handle more complex customer interactions that require a human touch.

For example, if it takes one hour to respond to 10 customers traditionally, an automated customer service system will complete the job in less time.

This allows you to assess other business operations, and if there is none, you can use the free time to rest and re-strategize.

3. Available 24/7

Humans can only work for a limited time per day. However, automated customer systems are available 24 hours a day, seven days a week. So whether in the dead of night or the wake of the day, you can be confident that customers won’t be stranded at any point interacting with your brand.

customer service automation benefits - available 24/7 - example from healthcare business of live chat availability

Even though this business is offline, there’s an option to leave a message for quick follow-up later.

4. Helps scale growth

Fast-growing companies have a larger customer base. Hence, automating customer service helps these businesses maintain and grow their consumer pool while staying on par with industry standards. It ensures they continually deliver quality without being overwhelmed by a growing demand for their service.

Is your business positioned for growth? Try our free growth strategy template to get prepared 🚀

5. Improved quality and consistency of customer service levels

When implemented strategically, customer support automation can be used throughout the customer journey to provide quality and consistent customer service. You can use it to answer queries, onboard new customers, showcase new or improved services, and get customer feedback.

chart showing different stages of the buyers or customer journey

6. Increased productivity

Customer service agents can only attend to one customer at a time. Imagine hundreds of customers calling in daily with similar issues, and you only have a 15-man customer support team. Of course, this will result in chaotic customer service delivery, increased staff burnout, and poor work output.

However, putting time-consuming tasks—such as messaging and directing orders—on autopilot enables you to streamline your workflow. When neither you nor your employees are overburdened with redundant tasks, there is a high chance of being efficient and productive.

7. Less room for error

Every human is susceptible to making mistakes. That is why automation is your best shot at reducing the number of mistakes made in customer service, as it minimizes the need for human involvement.

For example, when you have an overwhelming number of queries, customer support reps can forget to respond to some or misplace customer details. And this can lead to poor customer experiences. Conversely, when you use an automated customer service system, customers receive answers to their queries promptly and accordingly.

How to use customer service automation

Getting the best out of customer service automation requires using it appropriately. Here are a couple of ways to do that.

1. Automate responses to questions

Instead of manually answering redundant questions, you can use customer service automation to create an FAQ page or a centralized knowledge base that provides answers to common questions about your business.

faq page example from eataly

This makes it easier and faster for customers to access basic information, promoting a quality self-service experience.

2. Share customer refund information automatically

Processing refunds involves dealing with different customer banking platforms and accounts. So, instead of doing it manually, you can use customer service automation to process refund requests and notify customers of the refund completion.

3. Collect feedback from different channels

Customers’ feedback helps you gain insights about your services, products, and overall work culture. You can use customer service automation to send SMS surveys, obtain feedback, and create polls on social media platforms.

example of survey to collect customer data

Furthermore, you can add chat to your website or integrate an automatic rating system to collect feedback on how customers feel about your content. Consider using emoticons, thumbs up and down, or the five-star rating system.

4. Broadcast customer data updates

Automated customer support can take over most data-related tasks, such as retrieving customer feedback and handling purchases. It can pull customer data from different business databases and perform updates swiftly without any mistakes.

5. Assist customer service representatives

Automated customer service is far more than just facilitating customer-based conversations. You can use it to gather information for your customer service representatives to help them understand customers’ expectations and needs.

It can provide details about a customer—such as who they are, previous complaints, demographics, and their purchases—and send them to customer service agents beforehand for proper processing.

It’s also a great way to collect first-party data.

chart showing types of customer data sources

Customer service automation is the future of customer service

Today, the world is increasingly driven by technology, causing customers’ needs and expectations to evolve. Hence, it’s clear that customer service automation is necessary for businesses and customers.

Fortunately, the adoption of automated customer service has already begun, and it’s been unarguably successful. While there will always be trial and error with new updates, there are plenty of reasons to believe automation in customer service is here for the long term.

Sign up for our newsletter

Get the latest marketing tips and actionable insights for your business.